Central Bank Digital Currency (CBDC) has been fully developed worldwide. Israel has been progressing in the CBDC game, just like its rivals. A new press release says that the Bank of Israel plans to start using digital shekel.
The bank is making an “action plan” to give out the CBDC. It still needs to be clarified what will happen with the digital shekel. But in the document, the bank talked about why it makes sense for the central bank to release a digital asset.
The Bank of Israel revealed things that would make it more likely that a CBDC would be used in the future. The bank says that the “why” group includes using stablecoins, competition in the local payment system, and other countries, such as the United States and the European Union, have issued CBDC.
Also, the fact that people in Israel are using cash less and that technology for making payments is improving are essential factors. In the statement, it was also said that money is still used a lot in Israel. So, before starting the CBDC, the bank plans to track how people use cash.
Israel Implements CBDC With Precautions
It’s more complicated than it seems to make a new form of money. The way Nigeria’s finances are right now is an excellent example of the same thing. Currently, the government is forcing its people to use eNaira and limiting the use of cash. This led to more protests that turned deadly all over the country. Conversely, China went slowly and followed a step-by-step plan before releasing the digital yuan without any problems. It looks like Israel is moving slowly. The most recent press statement went on to say,
“The Bank of Israel must be prepared to advance the issuance of a digital shekel if the variables listed above support it. The Steering Committee will therefore monitor the developments in the aforementioned aspects on a periodic basis.”